1988 (6) TMI 66

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.... is brought in appeal, erred in directing the ITO to take the peerquiste value of rent-free furnished accommodation @ 12-1/2% of salary (10% for rent free accommodation plus 2-1/2% for furnishing). 2. The perquisite value of rent free accommodation provided by the assessee's employee. namely, Yadavindra Industries Pvt. Ltd. was offered for assessment @ 10% of the salary plus 2-1/2% for furnishi....

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.... when the value is known, it is not necessary to revalue the perquisite involved on the footing that the same perquisite could have been obtained for a greater amount." 3. The assessee's case before the AAC was that as per terms of employment which was for three years w.e.f. 25th Oct., 1978, a copy of which is given to us, the assessee's headquarter was to be at patiala where he was to be provi....

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....e perquisite value of rent free accommodation at Rs. 30,050 against Rs.9,000 returned by the assessee. The ITO had for this purpose taken into account the fact that the assessee resided at Palace hotel Chail, run by H.P. Tourism development Corporation and that the employer had paid a sum of Rs.40,250 towards the rental charged for this room. He, therefore, applied the provisions of r. 3 (iii)(A) ....

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....ed on record. When one considers that Shri Low was appointed for service at Patiala and that his stay at Chail was to entitle him to a daily allowance, there would be no confusion in the matter. The stay of the appellant at Chail becomes equivalent to that of a person staying at a Hotel on tour. The company instead of giving him daily allowance provided him with boarding and lodging in a Hotel. Th....